English football has entered a new era. After years of financial scandals, ownership crises, and fan frustration, Parliament has passed the Football Governance Act, which became law in July 2025, establishing the Independent Football Regulator (IFR). It passed convincingly too, with 415 MPs voting in favour of it, compared to just 98 against.
Described as a “historic moment” by fans and the government alike, the regulator aims to secure a fairer, more sustainable future for the national game. But what exactly is this new body, and what powers will it hold?
Why English Football Needed a Regulator
The IFR was born from a fan-led review into football governance following repeated financial collapses and ownership controversies. Clubs like Derby County, Sheffield Wednesday, and Wigan Athletic suffered – or continue to suffer – severe financial distress due to poor management, inadequate oversight, and risky spending.
Leicester City fans applaud Sheffield Wednesday supporters in solidarity amid the club’s ongoing financial struggles, as fans hold off entering the stadium in protest. pic.twitter.com/gz7rpMwB0F
— Sky Sports Football (@SkyFootball) August 10, 2025
Supporters had long argued that football’s self-governance had failed. The attempted European Super League breakaway in 2021 further exposed how vulnerable the game was to decisions made without fans’ consent. With both the Football Supporters’ Association and the English Football League (EFL) backing reform, Parliament acted with cross-party backing. The Conservatives initially introduced the bill but failed to push it through before the 2024 election. Labour then revived the bill within months of taking office, and it became law in May 2025.
What Is the Independent Football Regulator?
The Independent Football Regulator will oversee the men’s professional game in England’s top five divisions, operating separately from both government and football authorities. Its mission is simple but powerful: to make sure clubs are financially sound, responsibly run, and respectful of their heritage and supporters. The IFR will work through a licensing system, meaning every club will need a licence to play in the top five English divisions from 2027/28, ensuring compliance with the new standards.
The Regulator’s Core Objectives
The Football Governance Act gives the IFR three main objectives:
- Club Financial Soundness – Ensuring each club is run on a stable, long-term financial basis
- Systemic Financial Resilience – Strengthening the overall financial health of English football, particularly the distribution of money through the pyramid
- Heritage Protection – Safeguarding the traditions that define clubs, such as badges, colours, and stadiums
The regulator’s work must always support at least one of these goals. It cannot act outside this legal remit. It will, however, also consider ‘secondary’ outcomes such as sporting competition and growth of, and investment in, English football. Basically, the point here is that they should not pursue sustainability at absolutely any cost.
The IFR will also publish a Football Club Corporate Governance Code, setting standards for openness, equality, and community impact. Clubs will report annually on how they meet these expectations. The regulator will also issue regular reports, including a “State of the Game” review assessing football’s overall health every five years.
Key Powers of the Independent Football Regulator
The IFR will have far-reaching powers to intervene where clubs are mismanaged or face financial danger. Below are its main areas of authority.
Strengthened Owners’ and Directors’ Tests
Prospective owners and directors will face statutory tests to prove their fitness, the legitimacy of their wealth, and the sustainability of their financial plans. If current owners are found unsuitable, the IFR will have the power to remove them. This measure aims to prevent the kind of reckless ownership that has driven many clubs into crisis.
Enhanced Financial Regulation
Every club must demonstrate sound financial management – showing it can handle cash flow, withstand shocks, and protect key assets like its stadium. Where risk is detected, the regulator can impose bespoke conditions to stabilise the club. This proactive approach is designed to stop financial problems before they become disasters.
Some financial regulations, such as the Premier League’s Profit and Sustainability Rules, already exist, but this would be the first instance of a completely independent regulator imposing rules across five divisions.
Fan Engagement and Heritage Protection
Clubs will be legally required to maintain meaningful dialogue with supporters. Fans must be consulted on major issues such as: changes to club crests, names, or home colours; stadium relocations or sales; and key strategic decisions. These protections ensure supporters can never again be ignored on matters that shape their club’s identity.
This would, in theory, help prevent incidents such as the one at Cardiff when the Bluebirds changed their home kit from blue to red following the decision of owner Vincent Tan.
Preventing Breakaway Leagues
The IFR will have the power to ban English clubs from joining closed-shop or unlicensed competitions, such as the attempted European Super League. Any new competition must be merit-based and supported by fans. This provision safeguards the integrity and open nature of English football. It should also reduce the likelihood of domestic matches being played abroad, as seen recently with clubs in Italy and Spain.
Ensuring Fair Financial Distribution
If the Premier League and EFL fail to agree on a fair revenue-sharing model, the IFR will hold “backstop powers” to intervene and set one itself. This is designed to prevent financial inequality from widening between divisions and to protect the long-term health of the football pyramid.
Accountability and Transparency
The IFR must operate transparently, publishing annual reports and guidance for clubs. It will be accountable to Parliament but independent in its day-to-day operations. Initially funded by the government, it will later be supported by a levy on licensed clubs. This levy will be scaled according to each club’s financial capacity. The regulator is expected to take a “participative” approach, in other words, working constructively with clubs and owners to raise standards, and reserving heavy sanctions for serious or repeated breaches.
The Shadow Regulator and Next Steps
Before the IFR becomes fully operational, a Shadow Football Regulator is already in place. Its job is to design the structure, recruit senior leadership, and prepare the first State of the Game report. An interim chief operating officer began work in early 2024, while in October 2025, David Kogan was named chair of the regulator on a five-year contract. The appointment is subject to an ongoing inquiry, given Kogan’s donations to the Labour Party, as this is a non-partisan role.
Nevertheless, the appointment of Kogan brings the launch of the IFR a step closer, and it is expected to be operational by the end of 2025.
Reaction from Fans and the Football Industry
Reactions to the regulator have been largely positive. Supporters’ groups have celebrated the law as a “watershed moment”. The Football Supporters’ Association praised it for “protecting the clubs we love from the worst excesses of owners.” The EFL also welcomed the change, saying it would let clubs “rise and fall through the pyramid without the threat of financial catastrophe.”
The new law is not without some critics, though. Last year, West Ham vice-chair Karren Brady said that “extreme redistribution” would “replace our brilliant but brutal meritocracy with the likelihood of a closed shop”. However, she has since changed her stance and now publicly supports the regulator. Other fans do not dislike the idea of it, but remain unconvinced that it will do much good. They point towards other government regulators that are all bark and no bite.